CEO exit weighs on Endeavour Group shares
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More news: Shares in Endeavour Group fell nearly 3% to $4.98 after the drinks and hospitality giant announced chief executive and managing director Steve Donohue will step down after six years in the role.
The group is engaging external advisors as part of a comprehensive process to identify a new CEO.
E&P Capital retail analyst Phillip Kimber noted the announcement follows board renewal that occurred across CY24.
What they said: "The change in CEO is likely to weigh on sentiment towards EDV in the short term, although we note following a period of poor share price performance, the change follows a major board renewal. We also expect the new CEO is likely to be an external appointment," Kimber said in a note.
Endeavour CEO Steve Donohue steps down
The news: Drinks group Endeavour has announced its CEO and managing director Steve Donohue will step down after six years in the role.
The numbers: Donohue has been CEO since 2018 and has spent 30 years with the group.
He will remain in the role until a replacement is found. The Endeavour board said it is engaging external advisors as part of a comprehensive process to identify a replacement.
The context: The company said its board and Donohue have determined now is the right time for a new leader to take the group into its next phase of growth. Endeavour is Australia’s biggest alcoholic drinks retailer and operates both Dan Murphy's and BWS retail store chains as well as the country's largest portfolio of pubs and hotels.
Donohue began as a summer casual in the second Dan Murphy’s store in Alphington Victoria in 1994, before quickly rising through the ranks to take on a range of leadership roles.
He led the amalgamation of ALH Hotels Group and Endeavour Drinks to form Endeavour Group in 2018, and subsequently steered the demerger from supermarkets giant Woolworths and subsequent listing on the ASX in 2021.
The source: ASX announcement
